Oregon Insurance Division Protecting the insurance-buying public while supporting a positive business climate
Major Lines of Insurance Life Long-term care Annuities Health Long-term care Surety Property/casualty Commercial general liability Business owners Auto Homeowner/renter Workers compensation
Oregon: The Industry We Regulate Agents - 93,811 Insurers - 1,426 Filings - 58,876 Premiums - $17.5 billion
Oregon Premium Written: 2011 1% 3% 7% 14% 25% Life Annuities Accident & Health P&C (excl. Workers' Comp) Workers' Compensation Title 50%
Market Competition Based On Premium Accident and Health Market Share, 2011 Property and Casualty Market Share, 2011 39% 24% 20% Kaiser Foundation Health Plan of the NW Regence BCBS of Oregon Providence Health Plan Pacificsource Health Plan 72% 8% State Farm Mut Auto Ins 7% Co 7% 5% SAIF Corp Farmers Ins Co of OR State Farm Fire & Cas Co Other companies Other companies 6% 11%
Market Competition Based on Premium 65% Annuities Market Share, 2011 14% 9% 7% 5% MetLife Investors USA Ins Co Jackson National Life Ins Co Pruco Life Ins Co Lincoln Natl Life Ins Co Other companies 83% Life Market Share, 2011 7% 5% 4% Northwestern Mut Life Ins Co John Hancock Life Ins Co (USA) Standard Ins Co Other companies
Market Competition Based on Premium Homeowners Market Share, 2011 Private Passenger Auto Market Share, 2011 47% 26% 9% 8% 5% 5% State Farm Fire & Cas Co Safeco Ins Co of OR Farmers Ins Co of OR Farmers Ins Exchange Country Mut Ins Co Other companies 50% 20% State Farm Mut Auto Ins Co Farmers Ins Co of OR Safeco Ins Co of OR 13% Progressive Universal Ins Co Progressive Classic Ins Co 7% Other companies 5% 6%
Oregon Most Competitive State AMA study Oregon s commercial health insurance market the most competitive in the country overall. Exception: PacificSource has a 45 percent market share in Eugene-Springfield
Rate Rankings: 2009 Homeowners Oregon annual average premium: $544 Countrywide average premium (annual): $880 Only Wisconsin and Idaho less expensive Auto Oregon annual average premium: $723 Countrywide average: $785
Protecting Consumers Why we regulate Solvency Market regulation How we regulate State-based Tools we use to regulate Financial exams/analysis Licensing Rates and forms review Consumer advocacy
Protecting Consumers Make sure insurers can pay claims (solvency) License insurance companies/agents Review rates and forms (policies) for consumer protections Answer insurance questions (hotline) Help consumers resolve complaints/appeal denials
Complaint Process Once consumer advocates receive a complaint we: Let the consumer know we received it and who will advocate for them Give a copy to the insurer/agent and ask for an explanation Determine next steps based on the response Advise the consumer of our findings On average: Complaints resolved within 34 days!
Protecting Consumers Enforcement Investigate companies and agents Enforce laws Civil penalties/cease and desist orders Suspend/revoke agent license/company certificate of authority Refer for criminal prosecution Stipulated orders Lack authority to order restitution
Insurance Division: Key Facts
Insurance Division Revenue
Life and Annuities Life Term vs. Permanent New tool to find lost policies Annuities Buyer pays a premium or premiums for future income stream Key enforcement area because of complexity Suitability rules
Property and Casualty Auto myths My policy will remain active if I m late paying If my laptop is stolen from my car, it s covered by auto insurance I have 30 days to notify my insurer when I buy a new car Homeowner myths My policy covers flooding My policy covers landslides My insurance company can t refuse to cover me because of my dog
Workers Compensation System is healthy Oregon costs still among lowest in nation Improved benefits to workers; lower costs to employers over past two decades Slight increases in average premium this year and next year due to medical cost inflation
Workers Compensation Resources to help small employers reduce accidents, return workers to work and help on workers compensation issues Insurers OR-OSHA Workers Compensation Division Small Business and Injured Worker Ombudsman
Construction Contractors Must have: Surety bonds (not insurance) Liability insurance Workers compensation (commercial contractors) Surety bonds cover negligent or improper work/ breach of contract Bond pricing based on the type of bond, credit worthiness and history of job performance. Contractors pay more if their record reveals credit challenges and over extended lines of credit.
General Liability Required limits: from $100,000 for a residential limited contractor to $2 million for a commercial general contractor Level 1. General liability is a contract between an insurance company and the contractor. Covers bodily injury and property damage to others caused by contractor negligence. Workers comp required of all commercial contractors, even if no employees
Business Property Insurance Protects property, inventory, etc. from named perils (fire) or more, depending on what you buy Business interruption/ continuation covers loss of earnings due to a property loss. One of primary reasons businesses fail after a loss is lack of business interruption coverage Cyber liability insurance (e-insurance) emerges
Business Liability Insurance Business liability policies cover damage to others for: Bodily injury Property damage Personal injury (liable, slander, false arrest) Home-based business or home offices not automatically covered under homeowners policy Business Owners Package programs for main-street type businesses; combine property, liability, loss of earnings
Captive Insurance